Even in the best markets, there are always some distressed properties for sale in the Asheville, NC area. We typically think of distressed properties as either foreclosures (bank-owned) or short sales. Bank-owned properties have been through the foreclosure process, and are now being sold by the bank. They are referred to as REO (real-estate owned) properties by banks and real estate agents.
Short sales have not yet been foreclosed, but they may be headed in that direction. The homeowner is typically in default on their mortgage, and foreclosure proceedings may be in progress. A short sale is sometimes thought to be synonymous with a “quick sale,” but there is usually nothing quick about a short sale. It usually will take quite a while for a bank to approve a short sale. The term “short sale” actually means the home would sell for a price that is “short” of the amount needed to pay off the homeowner’s mortgage. In other words, the sellers are upside-down on their loan, and the lender will need to approve the sale in order for it to close.